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№ 9/2020

№ 9/2020

Fìnansi Ukr. 2020 (9): 95–109
https://doi.org/10.33763/finukr2020.09.095

ACCOUNTING AND TAXATION

LOVINSKA Ljudmyla 1, OLIYNYK Yana 2, KUCHERIAVA Maria 3

1Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0001-5427-7185
2SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/
3SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-2948-1234


Implementation of international recommendations for application of a three-tiered approach to transfer pricing documentation in Ukraine


The article considers challenges and consequences of introducing a three-level model of transfer pricing documentation in Ukraine. The purpose of study is to assess the state of regulatory support for implementation of Step 13 of the BEPS Action Plan and to identify institutional measures for further implementation of three-tiered documentation on transfer pricing, taking into account the requirements of the Organization for Economic Co-operation and Development (OECD). The authors analyzed the state of accession of countries all over the world to the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, in order to counteract the erosion of the tax base and the withdrawal of profits from taxation of the OECD, ratified by the Law of Ukraine dated 28.02.2019 No 2692-VIII. Analysis of national legislation to take into account the requirements of the BEPS Action Plan and the experience of cooperation of the Government of Ukraine with international tax organizations allowed to scientifically substantiate the directions of improvement of national regulations on tax issues and to determine methodology for application of innovative reporting form in the context of further implementation of BEPS Action Plan. It is identified that implementation of a three-tiered reporting model for transfer pricing in Ukraine is at the beginning of the development, in particular legislation. The authors emphasize the importance of counteracting information asymmetry by ensuring the unification of terminology and quality of the database for innovative reporting preparation, in particular, for global documentation on transfer pricing, transfer pricing documentation and Country-by-Country reporting of multinational entities. Within the study it was proved that the organization of the reporting process at all levels of the Three-Level Model of transfer pricing documentation (hereinafter the Three-Level Model) should be aimed at preparing reports that contain reliable information with the maximum exclusion of duplication.

Keywords:BEPS, transfer pricing documentation, three-tiered approach to transfer pricing documentation, Master file, Local file, CbCR, сountry-by-сountry report of multinational entities

JEL: М41, М48


Lovinska L. . Implementation of international recommendations for application of a three-tiered approach to transfer pricing documentation in Ukraine / L. . Lovinska, Y. . OLIYNYK , M. Kucheriava // Фінанси України. - 2020. - № 9. - C. 95-109.

Article original in Ukrainian (pp. 95 - 109) DownloadDownloads :168
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